PIERRE, S.D. (KELO) — The amount of post-closure financial assurance for Homestake Mining Company in South Dakota is going up.
The state Board of Minerals and Environment has agreed to raise it by nearly $19 million.
The amount currently is $61,271,809. The board on Thursday followed the recommendation from the state Department of Agriculture and Natural Resources and increased it to $80,201,732.
Homestake stopped active mining operations at Lead in 2002. Part of the mine was donated in 2006 and now serves as the Sanford Underground Research Facility, managed by the South Dakota Science and Technology Authority.
The financial assurance provided by Homestake is intended to cover water management and treatment, monitoring, and maintenance of post-closure areas at the site, in the event of something such as a bankruptcy by Homestake’s corporate parent, Barrick Gold Corporation.
Eric Holm, who calculates financial assurance amounts for the department, said the amount would continue to rise annually during the next four years. The schedule calls for $82,004,927 in 2024 and eventually will reach $88,108,340 in 2027.
Holm said Homestake would post the first additional amount probably next spring. Homestake is on a five-year schedule for recalculating the financial assurance. Holm said the next review would start in 2027.